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with the german economy and this is a big divergence. so that's a change. but looking over time, all stocks have the component of what they call the economic return. speculative return which is it for change and the valuation that the market puts on it. over time, one is a possum gain and the other is zero sum gain. sometimes good news, sometimes bad news. but over time the kind of net being nothing. >> we'll see what happens. good to have you on. we'll be out in westminster, joined by the british shadow business secretarier to. we'll talk currencies. find out why one strategist is bullish on the currency. after the ramp up in m&a that we've seen this year, we'll also speak to an expert in los angeles that says the fundamentalses for deal activity in 2013 are looking more solid. so where will the money flow in the new year, that's at 11:20. and the outlook for u.s. credit market appears less rose city. we'll speak to a moody's analyst that says high duration credit could be badly exposed. the european central bank is announcing either monetary policy decisions later today. economists expect ecb
that marie solving insolvent firms easier. crucial agreement for restructuring the economy in this transition period as resources must shift from unproductive to productive activities. it is the latter that create jobs. this reallocation process, though sometimes painful in the short run, i'll say always painful in the short run, carries the seed of future prosperity. a growing body of knowledge shows that by increasing the ability of the economy to adjust so that factors can be reallocated to the most competitive firms, aggregate labor productivity can increase substantially. some studies indicate a gain of as much as 20 force 30%. the current focus on competitiveness in france leading towards an institutional and fiscal set up that can support firms investment in innovation is therefore a welcome step in the right direction. another important aspect is the growth and competitiveness enhancing potential of further market integration in europe. one example is a very recent study which finds that applying the eu patent would raise the gains for european firms from patent and inventions by 60%.
it to some of the other developed economies, you can see how well australia is holding up. we've seen growth of just 2.5% in the u.s., 1.5% in canada and zero growth in the uk. locally, cutbacks in government spending weighed on the numbers and lower commodity prices also impacted on cash flow and the government is facing more criticism about its effort to keep the budget in surplus while the economy grows. >> the government has had the objective of making sure that we would bring our budget back to surplus when growth has been around trend. what we've been seeking to do through good budget policy has been to provide maximum flexibility to the reserve bank to a just rate so. the government will always put in place appropriate budget settings which will support growth and jobs. >> still, analysts say growth could slow further as the mining investment boom peaks. yesterday, the bank of australia cut interest rates to a record low of 3% and traders are looking further easing next year to offset the falling talks of trade, the high australian daughter and further cutbacks in government spending.
. so if you look at the other trends for the economy, it's still the same of steady slow appreciation and that there really i don't believe is any effect from the supposed anxiety about the fiscal cliff. i think people know there will be some type of resolution. we didn't know the details or when. but companies are still investing the way they would normally do and they're not stopping because of -- >> that doesn't make us quake a bit about the jobs report later this will week and what that does for investors' nerves? >> we know it will be worse than it would have been because of super storm sandy. so you didn't know how much it was to do with that and how much was the economy. so it will be a bit of a wash in terms of reading the tea leaves for the u.s. >> so the growth picture for the u.s., we sort of 1%, 2%, depending on what happens with the fiscal cliff. what do you think, 2.5%? >> yeah, i think we should be 2.5% to 3% by the end of next year. >> which might be a slightly better outturn. china seems to be back on track. is there anything in europe -- what's the tail risk at the m
to the economy. >> i'm wondering whether germany as we look at -- they're just above sort of recession territory at the moment. i'm wondering whether if they get better growth out of asia, that will offset the weakness that they're seeing in europe enough to keep them above the pencil line. >> what we've seen so far with today's numbers is exports are declining very sharp. they'll need asia and the u.s. to offset some of that demand weakness, but again, the biggest market for most is the euro zone. if the eurozone is performing badly, that will have a thok-on effect for those countries. >> there's a number of strategists saying after the u.s. has sort of led equities for most of the year, they're now saying europe is the place to be. from i think really the question you have to ask yourself is when cash, equities, credit, government bonds, where do you want to be. and equity in my mind mind is absolutely not. you need good growth numbers to justify the equity markets going up. now, i think there's a lot of investors looking at the yields on ghoechlt bonds or credits and that's motivating them to
're out with a view on your next year that doesn't sound too rosy. you talk about the economy contracting half a percent. challenges in the core countries. so walk us through how important the german vote is tomorrow and whether greece gets its aid as to the more broad brooutlook. >> the outlook is not improving. it's deteriorating for the eurozone. economic fundamentals are getting worse particularly in the countries of germany and france. these are the countries we revise down the most. in the periphery, there are signs that the recession is stabilizing. we're below the consensus. typical view is that the economy will broadly stagnate next year, we think it will continue to shrink and the ecb will continue to cap interest rates and perhaps at shall point the bond buying program will be in spain. >> and so when we talk about the sequence of events that markets are looking for the next couple of months, the main one still seems to be when spain asks for aid. pushed into the first quarter of next year now in your view? >> i think there are two windows of opportunities really. the first one
Search Results 0 to 5 of about 6